Paul Otellini Expects Insider to Replace Him as Chief Exec of Intel.

Paul Otellini, the chief executive officer of Intel, who will retire next May, expects to find his successor within the company and not to hire an outsider. The internal candidate should be the best choice for the company the size of Intel. However, an outsider will probably better position the company for the changing world.

“It is not up to me, but I think that is the most likely outcome. I am very comfortable with the internal candidates and the track record of internal versus external in our industry shows pretty clearly you want to stay inside if you can,” said Paul Otellini at a Sanford Bernstein investor conference, reports Reuters news-agency.

Many observers note that Mr. Otellini is retiring because he could not establish a strong presence for Intel on the market of chips for ultra-mobile devices. At the same time, using deep knowledge of the semiconductor industry and Intel’s strengths, Mr. Otellini consistently managed to improve financial results of the company every year.

A person not from Intel would probably better position the chip giant for ultra-mobile products like smartphones and tablets. In many ways, that would change Intel and its economics. But the bigger question is whether this will fundamentally impact the company and brings in additional risks.

"Even if you brought in Mr. or Ms. Perfect, that person is going to take whatever it is, two years to figure out the culture and the people and how systems work and stuff like that. In this environment, why take the risk and take the time,” asked Mr. Otellini rhetorically.

Discussion

Mr Otellini failed, like Anton reports. He's been shown the door in a nice way. How hard is it to grow a company so dominant in their current markets that employs bribes, dirty tricks and skulduggery (mafia tactics) to lock out AMD? In any case, the next CEO faces an up hill battle against a resurgent AMD and ARM coming up the rear. The FTC should be on watch for any anti-competitive behaviour in the channels.